COVID-19 tailwinds will continue for PC industry after vaccines - 2021 forecast

 

• The global PC market is heading toward the end of 2020 in a strong position, coming off a 10-year shipment high in Q3 due to the pandemic's work and learn from home shifts. But the backing trends could continue next year even as vaccines become more widely available.
• 2021 forecast: Earlier this month, research firm IDC forecast that PC demand (notebooks and desktops) will grow 18.2% Y/Y in Q4 and 1.4% in 2021.
• Notebook PC sales are expected to increase 26.4% in Q4 and 3.2% next year, while desktops will decline in both periods.
• "Earlier this year it seemed like this would be a six-month bump to the industry, but as we look at the supply chain pipeline into 2021, it's clear that the surge has more legs. The education backlog remains extensive and many school districts around the world are doing everything they can to secure inventory. At the same time consumers seem to be buying all ranges of notebook PCs from low-end entry level systems to high-end gaming machines. It is important to note that all of this is happening at a time when other device categories like smartphones, PC monitors, TVs, and gaming consoles are also growing. A clear shift in consumer spend has happened," says IDC's Ryan Reith, program VP of Worldwide Mobile Device Trackers.
• IDC notes that longer-term forecasts for PC shipments and average selling prices have increased as the number of PCs per household increases and as consumers keep buying "PCs further up the stack."
• Recent news that backs the forecast: Lenovo (OTCPK:LNVGY), the world's largest PC maker, reported Q2 results last month that featured a 53% Y/Y jump in net profits. The company predicted a 5-10% industry-wide increase for PC total addressable market for next year.
• HP (NYSE:HPQ) then reported an upside Q4 report with a 25% boost in Consumer notebook sales and a strong profit forecast. Dell's (NYSE:DELL) Q3 print included record Client Solutions revenue and an upside operating margin as sales of higher-end devices offset the strong mix of low-margin Chromebooks.
• https://seekingalpha.com/news/3647426-covidminus-19-tailwinds-will-continue-for-pc-industry-after-vaccines-2021-forecast